What happens to the policy assignment rights when the named insured dies?

When the named insured passes away, the rights associated with the insurance policy are transferred to the insured's legal representative. This is typically in line with estate laws, where the legal representative is tasked with managing the deceased's estate, including the handling of any insurance policies. This transfer of rights allows the legal representative to continue managing the policy, including filing claims or making necessary updates, ensuring that the coverage remains in effect during the estate settlement process. This continuity is crucial, as it helps protect the interests of any beneficiaries who may rely on the policy for financial support.

In contrast, the other options would not appropriately address the situation. Automatic cancellation of the policy, assuming control by beneficiaries directly, or reissuing the policy are not standard procedures upon the death of an insured individual. These would disrupt the intent of the insurance coverage established to benefit the insured's estate and the beneficiaries.